MINE4503 - 09 - Pit Optimisation - 020 - PRESENTATION - 01-Ultimate Pit Limits - V2

Pit Optimisation
Ultimate Pit Limits
By
Dr. Mehmet Cigla
1
1. Size of a Mining Operation
2. Ultimate Pit Limit – Manual Procedure
3. Ultimate Pit Limit – Floating Cone Algorithm
4. Ultimate Pit Limit – Lerchs Grossmann (LG) 2D Algorithm
6. Ultimate Pit Limit – Pseudo Flow Method
7. Ultimate Pit Limit – Software Applications
2
3
• Ultimate pit limit identifies the size or extent of extraction
• Objective - Maximises the undiscounted value of future cash flows
• Constraints - Satisfies the precedence – slope constraint
Bingham Canyon (copper) Chuquicamata copper The Super Pit (gold),

mine located south-west of mine, situated 1,650km located on south-east
Salt Lake City, Utah, US, is north of Santiago, Chile, is edge of Kalgoorlie, Western
the deepest open pit mine the second deepest open- Australia, is the sixth
in the world. pit mine in the world. deepest open-pit mine in
the world.
The Bingham Canyon pit is Chuquicamata open pit, is
more than 1.2km deep and 4.3km long, 3.0km wide The gold producing open
approximately 4km wide. and more than 850m deep. pit mine is 3.8km long,
1.5km wide and up to 600m
deep.
4
5
Method of Sections
𝑉𝑤 24.65𝑚3
Hypothetical section showing current pit outline OSR (Overall Stripping Ratio) corresponds to ultimate pit limit. 𝑶𝑺𝑹 = = = 0.52
𝑉𝑜 47.00𝑚3
• Section thickness = 1m
𝑉 $1.90 per m3 of ore
• Slope angle = 45° BESR (Breakeven Stripping Ratio) corresponds to ultimate pit limit. 𝑩𝑬𝑺𝑹 = = = 1.90
𝑆𝐶 $1.00 per m3 of waste
• Value of ore = V ($ per m3 of ore) = $1.90
• Stripping cost = SC ($ per m3 of waste) = $1.00 𝑁𝑉 = $1.90 per m3 of ore x 47.00 m3 – $1.00 per m3 of waste x 24.65 m3 = $64.65
𝑉𝑤1 7.50
𝐼𝑆𝑅1 = = = 1.5 ➔ ISR= Incremental Stripping Ratio
𝑉𝑜1 5.00
OSR (Overall Stripping Ratio)
𝑁𝑉1 = $1.90 per m3 of ore x 5.00 m3 – $1.00 per m3 of waste x 7.50 m3 = $2.00
𝑉𝑤 24.65 + 7.50 + 8.40 + 9.45
𝑂𝑆𝑅 = = = 0.81
𝑉𝑤2 8.40 𝑉𝑜 47.00 + 5.00 + 5.00 + 5.00
𝐼𝑆𝑅2 = = = 1.68
𝑉𝑜2 5.00
OSR and ISR at ultimate pit limit relationship
𝑁𝑉1 = $1.90 per m3 of ore x 5.00 m3 – $1.00 per m3 of waste x 8.40 m3 = $1.10
OSR is always less than ISR at ultimate pit limit
OSR = 0.81 < ISR = 1.90

𝑉𝑤3 9.45
𝐼𝑆𝑅3 = = = 1.89
𝑉𝑜3 5.00 Net value (NV) for the section
𝑁𝑉3 = $1.90 per m3 of ore x 5.00 m3 – $1.00 per m3 of waste x 9.45 m3 ≈ $0.00 𝑉𝑤 = 24.65 + 7.50 + 8.40 + 9.45 = 50.00 m3
𝑉𝑜 = 47.00 + 5.00 + 5.00 + 5.00= 62.00 m3

𝑉𝑤4 10.50
𝐼𝑆𝑅4 = = = 2.10 𝑁𝑉1 = $1.90 x (62.00 m3) – $1.00 x (50.00 m3) = $68.00
𝑉𝑜4 5.00
𝑁𝑉3 = $1.90 per m3 of ore x 5.00 m3 – $1.00 per m3 of waste x 10.50 m3 = - $1.00
6
Method of Sections
Economic Data
Metal price (𝑝) $4000.00 per tonne

$ per gram or $ per tonne of metal (or $ per troy ounce of
metal) Value of an ore block
Refining cost (𝑟) $500.00 per tonne

$ per gram or tonne of metal or $ per troy ounce of metal
𝐕 = 𝑝 − 𝑟 𝑔𝑦 − 𝑚 − 𝑐
Mining cost (𝑚) $10.00 per tonne, 2.15 90

$ per tonne of material 𝐕 = 4,000 − 500 . − 15 − 10
100 100
Processing cost (𝑐) $15.00 per tonne,
𝐕 = $𝟒𝟐. 𝟕𝟑
$ per tonne of ore
Metallurgical recovery (𝑦) 90% Value of a waste block
%
𝐕 = −𝑚
Block Grades (Cu%)
𝐕 = $ − 𝟏𝟎
0.00 2.15 0.08 0.05 0.00 0.00 0.05
0.00 2.25 2.15 1.15 0.00 Economic block model
m+c 10 + 15
g= = = 0.0079 = 0.79% 3.13 1.15 0.78
p−r y 4,000 − 500 0.9
-10.00 42.73 -10.00 -10.00 -10.00 -10.00 -10.00
Block Grades (Cu%) above breakeven cut-off grade
-10.00 45.88 42.73 11.23 -10.00
0.00 2.15 0.08 0.05 0.00 0.00 0.05 73.60 11.23 -10.00
0.00 2.25 2.15 1.15 0.00
3.13 1.15 0.78
7
Ultimate pit @ slope angle = 45°
-10.00 42.73 -10.00 -10.00 -10.00 -10.00 -10.00
-10.00 45.88 42.73 11.23 -10.00
73.60 11.23 -10.00
8
-10.00 42.73 -10.00 -10.00 -10.00 -10.00 -10.00
-10.00 45.88 42.73 11.23 -10.00
73.60 11.23 -10.00
Overall undiscounted value = $42.73
9
-10.00 42.73 -10.00 -10.00 -10.00 -10.00 -10.00
-10.00 45.88 42.73 11.23 -10.00
73.60 11.23 -10.00
10
-10.00 42.73 -10.00 -10.00 -10.00 -10.00 -10.00
-10.00 45.88 42.73 11.23 -10.00
73.60 11.23 -10.00
11
-10.00 42.73 -10.00 -10.00 -10.00 -10.00 -10.00
-10.00 45.88 42.73 11.23 -10.00
73.60 11.23 -10.00
12
-10.00 42.73 -10.00 -10.00 -10.00 -10.00 -10.00
-10.00 45.88 42.73 11.23 -10.00
73.60 11.23 -10.00
13
-10.00 42.73 -10.00 -10.00 -10.00 -10.00 -10.00
-10.00 45.88 42.73 11.23 -10.00
73.60 11.23 -10.00
At ultimate pit
• Overall undiscounted value = $167.40 per tonne
• Overall stripping ratio (SR) = 6/6 = 1; (a ratio that relates the waste to be removed to mine ore)
14
Method of Sections
Economic Data Value of an ore block
Metal price (𝑝) $4,000.00 per tonne 𝐕 = 𝑝 − 𝑟 𝑔𝑦 − 𝑚 − 𝑐

metal) 2.15 90
𝐕 = 4,000 − 500 . − 15 − 10
Refining cost (𝑟) $500.00 per tonne 100 100
𝐕 = $𝟒𝟐. 𝟕𝟑
Mining cost (𝑚) $10.00 per tonne,
$ per tonne of material
Value of a waste block
$ per tonne of ore
𝐕 = −𝑚
Metallurgical recovery (𝑦) 90%
% 𝐕 = $ − 𝟏𝟎
Block Grades (Cu%) Economic block model
0.00 2.15 0.08 0.05 0.00 0.00 0.05 -10.00 42.73 -10.00 -10.00 -10.00 -10.00 -10.00
0.00 2.25 2.15 1.15 0.00 -10.00 45.88 42.73 11.23 -10.00
𝑚+𝑐 10 + 15
𝑔= = = 0.0079 = 0.79% 3.13 1.15 0.78 73.60 11.23 -10.00
𝑝−𝑟 𝑦 4,000 − 500 0.9
Block Grades (Cu%) Ultimate Pit Limit
0.00 2.15 0.08 0.05 0.00 0.00 0.05 -10.00 42.73 -10.00 -10.00 -10.00 -10.00 -10.00
0.00 2.25 2.15 1.15 0.00 -10.00 45.88 42.73 11.23 -10.00
3.13 1.15 0.78 73.60 11.23 -10.00
15
Method of Sections

metal) 2.15 90
𝐕 = 7,500 − 500 . − 15 − 10
𝐕 = $𝟏𝟏𝟎. 𝟒𝟓
$ per tonne of ore
𝐕 = −𝑚
% 𝐕 = $ − 𝟏𝟎
0.00 2.15 0.08 0.05 0.00 0.00 0.05 -10.00 110.45 -10.00 -10.00 -10.00 -10.00 -10.00
0.00 2.25 2.15 1.15 0.00 -10.00 116.75 110.45 47.45 -10.00
𝑚+𝑐 10 + 15
𝑔= = = 0.0040 = 0.40% 3.13 1.15 0.78 172.19 47.45 24.14
𝑝−𝑟 𝑦 7,500 − 500 0.9
0.00 2.15 0.08 0.05 0.00 0.00 0.05 -10.00 110.45 -10.00 -10.00 -10.00 -10.00 -10.00
0.00 2.25 2.15 1.15 0.00 -10.00 116.75 110.45 47.45 -10.00
3.13 1.15 0.78 172.19 47.45 24.14
16
Method of Sections

metal) 2.15 90
𝐕 = 2,800 − 500 . − 15 − 10
𝐕 = $𝟏𝟗. 𝟓𝟏
$ per tonne of ore
𝐕 = −𝑚
% 𝐕 = $ − 𝟏𝟎
0.00 2.15 0.08 0.05 0.00 0.00 0.05 -10.00 19.51 -10.00 -10.00 -10.00 -10.00 -10.00
0.00 2.25 2.15 1.15 0.00 -10.00 21.59 19.51 -10.00 -10.00
𝑚+𝑐 10 + 15
𝑔= = = 0.0121 = 1.21% 3.13 1.15 0.78 39.79 -10.00 -10.00
𝑝−𝑟 𝑦 2,800 − 500 0.9
0.00 2.15 0.08 0.05 0.00 0.00 0.05 -10.00 19.51 -10.00 -10.00 -10.00 -10.00 -10.00
0.00 2.25 2.15 1.15 0.00 -10.00 21.59 19.51 -10.00 -10.00
3.13 1.15 0.78 39.79 -10.00 -10.00
17
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Ultimate pit limit identifies the size or extent of extraction
Objective - Maximises the undiscounted value of future cash flows
Constraints - Satisfies the precedence – slope constraint
Steps of the algorithm
• Float the cone from left to right along the top row of blocks.
• Remove a block with positive economic value

-1 -1 -1 -1 -1 1 -1
• After traversing the first row, move the apex of the cone to the -2 -2 4 -2 -2
rows below
7 1 -3
• Float the cone from left to right, stop when it encounters a block
with positive economic value
• If sum of the economic values of all blocks falling within the cone
is positive (or zero), remove these blocks, otherwise, float the
cone to find the next block with positive economic value
• Continue the floating process moving from left to right and top to
bottom until no more blocks may be removed
20

-1 -1 -1 -1 -1 1 -1
rows below
7 1 -3
Value = +1.0
21

-1 -1 -1 -1 -1 1 -1
rows below
7 1 -3
Value = +1.0
22

-1 -1 -1 -1 -1 1 -1
rows below
7 1 -3
Value = +2.0
23

-1 -1 -1 -1 -1 1 -1
rows below
7 1 -3
Value = -2.0
24
Ultimate pit limit identifies the size or extent of extraction -1 -1 -1 -1 -1 1 -1
-2 -2 4 -2 -2
7 1 -3
Steps of the algorithm Value = +2.0

-1 -1 -1 -1 -1 1 -1
rows below
7 1 -3
Value = +3.0
SR = 7/3
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Mining too little – mutual support is missing Mining too much
-1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1
-2 -2 -2 -2 -2 5 -2 -2
10 -3 10 5
-1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1
-2 -2 -2 -2 -2 -2 -2 -2 -2 -2 5 -2 -2 5 -2 -2
10 -3 10 10 -3 10 5 5
Value = -1.0 Value = -1.0 Value = +2.0 Value = +1.0
-1 -1 -1 -1 -1 -1 -1
-2 -2 -2 -2 -2
10 -3 10
Value = +3.0
SR = 12/2 = 6
26
Combination of both problems
-1 -1 -1 -1 -1
5 -4 5
-1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1
5 -4 5 5 -4 5 5 -4 5
3 3 3
Value = +2 Value = +2 Value = +4.0
-1 -1 -1 -1 -1
5 -4 5
Value = +5.0
SR = 5/2 = 2.5
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Example 1
-1 -1 -1 -1 -1
5 -4 5
3
𝒊ൗ 0 1 2 3 4
𝒋
0 0 0 0 0 0
1 -1 -1 -1 -1 -1
-1 -1 -1 -1 -1
2 5 -4 5
4 -5 4
3 3
-2
29
Example 1
-1 -1 -1 -1 -1
5 -4 5
3
𝒊ൗ 0 1 2 3 4
𝒋
0 0 0 0 0 0
1 -1 -1 -1 -1 -1
-1 -1 -1 -1 -1
-1
2 5 -4 5
4 -5 4
3
3 3
-2
30
Example 1
-1 -1 -1 -1 -1
5 -4 5
3
𝒊ൗ 0 1 2 3 4
𝒋
0 0 0 0 0 0
1 -1 -1 -1 -1 -1
-1 -1 -1 -1 -1
-1 2
2 5 -4 5
4 -5 4
3 -2
3 3
-2
1
31
Example 1
-1 -1 -1 -1 -1
5 -4 5
3
𝒊ൗ 0 1 2 3 4
𝒋
0 0 0 0 0 0
1 -1 -1 -1 -1 -1
-1 -1 -1 -1 -1
-1 2 -1
2 5 -4 5
4 -5 4
3 -2 6
3 3
-2
1
32
Example 1
-1 -1 -1 -1 -1
5 -4 5
3
𝒊ൗ 0 1 2 3 4
𝒋
0 0 0 0 0 0
1 -1 -1 -1 -1 -1
-1 -1 -1 -1 -1
-1 2 -1
2 5 -4 5
4 -5 4
3 -2 6
3 3
-2
1
33
Example 1
-1 -1 -1 -1 -1
5 -4 5
3
𝒊ൗ 0 1 2 3 4
𝒋
0 0 0 0 0 0
1 -1 -1 -1 -1 -1
-1 -1 -1 -1 -1
-1 2 -1 5
2 5 -4 5
4 -5 4
3 -2 6
3 3
-2
1
34
Example 1
-1 -1 -1 -1 -1
5 -4 5
3
𝒊ൗ 0 1 2 3 4
𝒋
0 0 0 0 0 0
1 -1 -1 -1 -1 -1
-1 -1 -1 -1 -1
-1 2 -1 5
2 5 -4 5
4 -5 4
3 -2 6
3 3
-2
1
35
Example 1
-1 -1 -1 -1 -1
5 -4 5
3
𝒊ൗ 0 1 2 3 4
𝒋
0 0 0 0 0 0
1 -1 -1 -1 -1 -1
-1 -1 -1 -1 -1
-1 2 -1 5
2 5 -4 5 Value = +5.0
4 -5 4
3 -2 6 SR = 5/2 = 2.5
3 3
-2
1
36
Example 2
-1 -1 -1 -1 -1 1 -1
-2 -2 4 -2 -2
7 1 -3
𝒊ൗ 0 1 2 3 4 5 6
𝒋
0 0 0 0 0 0 0 0
1 -1 -1 -1 -1 -1 1 -1
-1 -1 -1 -1 -1 1 -1
-1 -1 -1 2 3 2
2 -2 -2 4 -2 -2 Value = +3.0
-3 -3 3 -3 -1
-4 -4 3 1 1
SR = 7/3
3 7 1 -3
4 4 -6
0 4 -2
37
Example 3
𝒊ൗ 1 2 3 4 5 6
𝒋
0 0 0 0 0 0 0 0
1 -1 -1 -1 -1 -1 -1 -1
-1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1
-1 -1 -1 -1 -1 -1 3
-2 -2 -2 -2 -2
2 -2 -2 -2 -2 -2
10 -3 10 X -3 -3 -3 -3 -3 X
-4 -4 0 -3 4
3 10 -3 10
X X 7 -6 7 X X
3 -3 7
Value = +3.0
SR = 12/2 = 6
38
𝒊ൗ 0 1 2 3 4
Example 4 𝒋
0 0 0 0 0 0
1 -1 -1 -1 -1 -1
-1 -1 -1 -1 -1
5 -2 -2
2 5 -2 -2
5
3 5
𝒊ൗ 0 1 2 3 4 5 6
𝒋
0 0 0 0 0 0 0 0
1 -1 -1 -1 -1 -1 1 -1
-1 -1 -1 -1 -1 1 -1
Example 5 -2 -2 4 -2 -2
2 -2 -2 4 -2 -2
7 1 -3
3 7 1 -3
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Based on Graph Theory
G = (N, A)
N represents set of nodes (blocks)

A represents set of arcs from node i to node j
Some Examples: In 1736 Euler solved the problem of whether, given the map below of the city of
Konigsberg in Germany, someone could make a complete tour, crossing over all 7
• Road Networks bridges over the river Pregel, and return to their starting point without crossing any
• Communication networks bridge more than once.
• Computer systems
• Foreign exchange/multinational tax planning (network of fiscal flows)
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The maximum flow problem was first formulated in 1954 by T. E. Harris and F. S.
Ross as a simplified model of s railway traffic flow.
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2008
2012-2013
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Whittle
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46
Whittle
More?
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Existing setup
New setup
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Existing setup
New setup
Block Dimensions X Y Z - The dimensions of each block in the X, Y and Z directions. The units of measurement for dimensions are
usually metres or feet. These values are set during or before the importation of the block model file. They are not editable.
Model Framework Dimensions X Y Z - The model framework size is expressed as the number of blocks in the X, Y and Z directions.
These values are set during or before the importation of the block model file. They are not editable.
Model Framework Origin X Y Z and Orientation
X, Y and Z - The model origin coordinates. The origin of the model framework is at the outer corner of the block with coordinates
1,1,1. Note that it is not at the centre of this block. Providing origin coordinates is optional, but they can be useful when a pit
shells output (results file) is read back into a GMP, and when reading in a polygon file. The origin coordinates must be in a
Others coordinate system that is aligned parallel to the model framework.
i, j, k Azimuth - The angle of rotation of the block model around the Z axis (that is, in the horizontal plane), clockwise from North. Valid
values for azimuth are -360 to 360.
Whittle
i, j, k
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MP3D Whittle
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7 58
8 57
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10 55
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13 52
R(IZ, 1+(46-IZ)*0.05/5,46,1) 14 51
15 50
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18 47
19 46
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MP3D Whittle
1 64
2 63
3 62
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Reference Mining Cost 5 $/t 5 60
6 59
IZ MCAF MC
7 58
46 1.00 5.00
8 57
45 1.01 5.05
9 56
44 1.02 5.10
10 55
43 1.03 5.15
11 54
42 1.04 5.20
12 53
41 1.05 5.25
13 52
R(IZ, 1+(46-IZ)*0.05/5,46,1) 40
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1.06
1.07
5.30
5.35
14 51
38 1.08 5.40
15 50
37 1.09 5.45 16 49
36 1.10 5.50 17 48
35 1.11 5.55 18 47
34 1.12 5.60 19 46
33 1.13 5.65 20 45
32 1.14 5.70 21 44
31 1.15 5.75 22 43
30 1.16 5.80 23 42
29 1.17 5.85 24 41
28 1.18 5.90 25 40
27 1.19 5.95 26 39
26 1.20 6.00 27 38
25 1.21 6.05 28 37
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MINE4503 - 09 - Pit Optimisation - 020 - PRESENTATION - 01-Ultimate Pit Limits - V2

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MINE4503 - 09 - Pit Optimisation - 020 - PRESENTATION - 01-Ultimate Pit Limits - V2

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Pit Optimisation

Ultimate Pit Limits

• Objective - Maximises the undiscounted value of future cash flows

• Constraints - Satisfies the precedence – slope constraint

Bingham Canyon (copper) Chuquicamata copper The Super Pit (gold),

OSR = 0.81 < ISR = 1.90

𝑉𝑜 = 47.00 + 5.00 + 5.00 + 5.00= 62.00 m3

Metal price (𝑝) $4000.00 per tonne

Refining cost (𝑟) $500.00 per tonne

Mining cost (𝑚) $10.00 per tonne, 2.15 90

-10.00 42.73 -10.00 -10.00 -10.00 -10.00 -10.00

-10.00 45.88 42.73 11.23 -10.00

73.60 11.23 -10.00

-10.00 42.73 -10.00 -10.00 -10.00 -10.00 -10.00

-10.00 45.88 42.73 11.23 -10.00

73.60 11.23 -10.00

Overall undiscounted value = $42.73

-10.00 42.73 -10.00 -10.00 -10.00 -10.00 -10.00

-10.00 45.88 42.73 11.23 -10.00

73.60 11.23 -10.00

Overall undiscounted value = $68.61

-10.00 42.73 -10.00 -10.00 -10.00 -10.00 -10.00

-10.00 45.88 42.73 11.23 -10.00

73.60 11.23 -10.00

Overall undiscounted value = $101.34

-10.00 42.73 -10.00 -10.00 -10.00 -10.00 -10.00

-10.00 45.88 42.73 11.23 -10.00

73.60 11.23 -10.00

Overall undiscounted value = $102.57

-10.00 42.73 -10.00 -10.00 -10.00 -10.00 -10.00

-10.00 45.88 42.73 11.23 -10.00

73.60 11.23 -10.00

Overall undiscounted value = $156.17

-10.00 42.73 -10.00 -10.00 -10.00 -10.00 -10.00

-10.00 45.88 42.73 11.23 -10.00

73.60 11.23 -10.00

• Overall undiscounted value = $167.40 per tonne

Metal price (𝑝) $4,000.00 per tonne 𝐕 = 𝑝 − 𝑟 𝑔𝑦 − 𝑚 − 𝑐

Block Grades (Cu%) Economic block model

Block Grades (Cu%) Ultimate Pit Limit

3.13 1.15 0.78 73.60 11.23 -10.00

Metal price (𝑝) $7,500.00 per tonne 𝐕 = 𝑝 − 𝑟 𝑔𝑦 − 𝑚 − 𝑐

Block Grades (Cu%) Economic block model

Block Grades (Cu%) Ultimate Pit Limit

3.13 1.15 0.78 172.19 47.45 24.14

Metal price (𝑝) $2,800.00 per tonne 𝐕 = 𝑝 − 𝑟 𝑔𝑦 − 𝑚 − 𝑐

Block Grades (Cu%) Economic block model

Block Grades (Cu%) Ultimate Pit Limit

3.13 1.15 0.78 39.79 -10.00 -10.00

Objective - Maximises the undiscounted value of future cash flows

Constraints - Satisfies the precedence – slope constraint

Steps of the algorithm

• Remove a block with positive economic value

Objective - Maximises the undiscounted value of future cash flows

Constraints - Satisfies the precedence – slope constraint

Steps of the algorithm

• Remove a block with positive economic value

Objective - Maximises the undiscounted value of future cash flows

Constraints - Satisfies the precedence – slope constraint

Steps of the algorithm

• Remove a block with positive economic value

Objective - Maximises the undiscounted value of future cash flows

Constraints - Satisfies the precedence – slope constraint